SRS Ltd Management Discussions.

Management Discussion Analysis

India remained the fastest growing economy in the world with a GDP of 6.8% for FY19. The sustained investments and positive reforms by the government have helped improve Indias ranking by 23 places to reach 77th in the World Banks Ease of Doing Business Report 2018. The Interim Budget 2019-20 gave a signi cant push to consumption in the form of direct transfers to farmers, tax relief and greater investment opportunities. Further, the governments focus on the liberalisation of FDI regime for both Telecom and Media and Entertainment sectors have resulted in increased investments. Going forward, the strengthening investments and robust private consumption are expected to drive the countrys economy to ~7% in FY20.

Indian Media and Entertainment Sector scenario

During the year gone by, the Indian Media and Entertainment (M&E) sector continued to embrace newer technologies as growth was witnessed across conventional platforms, broadcast TV and lms, at the backdrop of growing subscription base and ticket prices respectively. The Indian M&E sector witnessed a robust growth of 13.4% YoY, reaching H1.67 Tn. in CY2018. Further, the advertising sector grew at 12.7% in 2018 led by digital advertising which grew by 34% YoY, while television advertising grew 14% YoY. Moreover, during the year under review, the domestic theatrical revenue reached H102 Bn. registering a growth of 6% over previous year.

Large talent pool, increasing employment opportunities, intriguing storytelling, post-production, and regulatory bene ts are nding the right audience among the Indian diaspora, driving the sectoral growth. The sector is expected to cross H2.35 Tn. by CY 2021, growing at a CAGR of 12% between 2018 to 2021.

Indian Film Exhibition Industry- Overview

The Indian lm industry demonstrated growth of 12.2% in 2018, reaching a market size of H174.5 Bn. in 2018. Although the sector witnessed a decline in a number of the movie released (from 1,807 lms in 2017 to 1,776 lms in 2018), the year proved to be blockbuster in terms of the box o ce collection with lms entering the H1 Bn. club almost every month. Despite the fact that only 13.4% of lms were released, Hindi lms segment contributed about 42.1% to the annual Net Box O ce Collection (NBOC) with other regional language movies contributing about 46%. Further, the domestic theatrical revenue registered a growth of 6% YoY basis to reached H102 Bn. in FY 2019.

As a result of urbanization and favourable demographics, the demand for modern cinema screens featuring quality infrastructure, latest audio-visual systems, and multiple F&B o erings is on the rise. The new-age multiplexes have rede ned the ‘entertainment quotient with enhanced facilities and services complementing the cinema experience. The single-screen cinemas are also investing in their infrastructure up gradation to stay relevant to the changing technologies and consumer experiences. In India, the total number of screens grew to 9,601 in 2018 as against 9,530 in 2017. Of the 9,601 screens, 2,950 were multiplex screens while 6,651 were single-screen theatres. Further, cable and satellite rights have also witnessed healthy growth in revenue from H19 Bn. in 2017 to H21.2 Bn. in 2018.

Recent development/Investments

The Foreign Direct Investment (FDI) in ows in the Information and Broadcasting (I&B) sector (including Print Media) in the period April 2000 June 2018 stood at US$ 7.17 billion, as per data released by Department of Industrial Policy and Promotion (DIPP).

As of September 2018, Twitter announced video content collaboration with 12 Indian partners for video highlights and live streaming of sports, entertainment and news.

As of August 2018, PVR Ltd acquired SPI Cinema for worth US$ 94.42 million.

In H12018, 5 private equity investments deals were recorded of worth US$ 115 million.

The Indian digital advertising industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 32 per cent to reach Rs 18,986 crore (US$ 2.93 billion) by 2020, backed by a ordable data and rising smartphone penetration.

India is one of the top ve markets for the media, content and technology agency Wavemaker where it services clients like Hero MotoCorp, Paytm, IPL and Myntra among others

After bagging media rights of Indian Premier League (IPL), Star India has also won broadcast and digital rights for New Zealand Cricket upto April 2020.

Government Initiatives

The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of Information and Broadcasting, Government of India, with a request to fastrack the recommendations on broadcasting, in an attempt to boost reforms in the broadcasting sector. The Government of India has agreed to set up the National Centre of Excellence for Animation, Gaming, Visual E ects and Comics industry in Mumbai. The Indian and Canadian Government have signed an audio visual co-production deal to enable producers from both the countries exchange and explore their culture and creativity, respectively.

The Government of India has supported Media and Entertainment industrys growth by taking various initiatives such as digitizing the cable distribution sector to attract greater institutional funding, increasing FDI limit from 74 per cent to 100 per cent in cable and DTH satellite platforms, and granting industry status to the lm industry for easy access to institutional nance.

Road Ahead

The Indian Media and Entertainment industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate.

Growth is expected in retail advertisement, on the back of factors such as several players entering the food and beverages segment, e-commerce gaining more popularity in the country, and domestic companies testing out the waters. The rural region is also a potentially pro table target.


During the F.Y. 2017-2018, SRS Limited was a diversi ed Company deals in Cinema, Jewellery, Retail. SRS worked on the motto of ‘Enduring quality and Trust which denotes its belief in superior customer relationship, integrity and innovation on every step of the business process to deliver products and services that are second to none.

By the end of March, 2018, SRS Limited has closed its Jewellery & Retail divisions and during the F.Y. 2018-2019, the Company has only One operational vertical i.e. Cinema Exhibition.

SRS Cinemas

SRS Group launched its cinema exhibition division, SRS Cinemas, on 12th November 2004 in Faridabad and since then has grown from strength to strength with its presence in 17 cities with 14 multiplexes under its SRS Limited and 4 multiplexes under SRS Entertainment India Limited, Wholly Owned Subsidiary of SRS Limited to provide an exemplary and worthy movie experience to its customers is of paramount importance to SRS.

Keeping this in mind, the multiplexes are tted with latest sound and projection system and o ers easy booking options like online, mobile booking and even tele-booking.

At present, SRS Cinemas has 38 screens under SRS Limited and 12 screens under SRS Entertainment India Limited, Wholly Owned Subsidiary of SRS Limited. The brands primary objective for every cinema viewer entering its multiplexes is to provide them with a comfortable cinematic experience. For this, the seats are ultra-luxurious with ample of arm to arm distance.

Also, keeping safety aspects in mind, the seats are fabricated with re retardant fabric. All this and more, is what puts SRS cinemas ahead of its competitors and has created a strong foothold in tier 2 cities as well, such as Patiala, Ludhiana, Bijnor etc.

SRS multiplexes are not just about movies but way more. With attention to every little detail, SRS Cinemas has all the facilities required to make its customers movie viewing experience unforgettable.


The Company was dealing in Jewellery Division both Wholesale and Retail which contributed major part of revenue. The Companys jewellery division was operated under the brand ‘SRS Jewells.

Pursuant to board resolution dated 15th December, 2017, the Company has decided to discontinue the operations of its Gold & Jewellery Division. The intention of discontinuing the Jewellery division was intimated to the Stock exchanges and hence, the Jewellery Division was permanently closed.


The company had various retail stores spread across di erent locations, However, Vide its Board resolution dated 13th February, 2018, the Company intended to sell its retail division to Spencer Retail Limited and sought for shareholders approval through postal ballot vide notice dated 21st February, 2018 and got the shareholders approval subsequently and applied for the lenders approval which could not be obtained. Hence, the sale to Spencer Retail Limited did not materialise due to failure to obtain NOC from lenders. Due to liquidity crunch the payment of most of the lessors of retail stores were also outstanding for several months.

Since the selling of retail division was already in the process, in consequence of this the employees of the retails stores had resigned in majority in February, 2018 itself and the top executives were not available for the decision making as the statutory authorities had raided the premises of SRS group on 8th March, 2018 which created a panic in SRS group as a whole and among the lessors of retail stores. Consequently, the management was compelled to close down the retail division during last week of March 2018 as and where basis leading to a signi cant loss of inventory and property, plant & equipment.

Human Resource

During the F.Y. 2017-2018, the Company has terminated some of the employees while some resigned from the Company. The sta pertaining to jewellery and retail business left the Company, pursuant to the discontinuance of their operations.

The Cinema division was the only operational division by the end of FY 2017-18.

SRS IT Infrastructure Upgrade

The Company believes in constant upgrade of Technology and invests wisely to utilize the true potential of technology to provide stability, speed and transparency to business. We have below mentioned IT Applications in our company.

Vista Screen schedule at box o ce.

GST Implementation done.

Create new reports as per requirement of account.

Vista Version upgrade

Vista H.O version upgrade 4.3.506.8

Bulk booking bill generate from candy with customer GST Number

BMS Cancelation active all sites.

Paytm o line done at all sites

Consolidate ticket done at all sites.


The Company is under Corporate Insolvency Resolution Process (“CIRP”) under Insolvency and Bankruptcy Code, 2016 vide order dated 21.08.2018 of Honble National Company Law Tribunal, Chandigarh Bench. Mr. Ashok Kumar Gulla has been appointed as Resolution Professional. In accordance with the Code, Resolution Professional has invited Expression of Interests from eligible Resolution Applicants for the resolution of the Company.

As per the Insolvency and Bankruptcy Code, 2016 public announcement were made inviting the claims from the creditors and during the Corporate Insolvency Resolution Process (“CIRP”) Expression of Interest (“EOI”) were invited for submitting the Resolution Plan for SRS Limited. The Resolution Plans received from the applicants were placed before the Committee of Creditors for approval. The plan submitted did not get through and an application under Section 33 of the Insolvency and Bankruptcy Code, 2016 were led for the suitable orders.

Cautionary Statement

Some information in this report may contain forward-looking statements. We have based these forward looking statements on our current beliefs, expectations and intentions as to facts, actions and events that will or may occur in the future. Such statements generally are identi ed by forward-looking words such as “believe”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words.

Notice is hereby given that the 19th Annual General Meeting (AGM) of the Members of SRS Limited will be held as under:

Day : Monday
Date : 30th September, 2019
Time : 11:30 A.M.
Venue : Basement-1, SRS Multiplex,
City Centre, Sector-12,

to transact the following business:


1. To receive, consider and adopt the Audited Financial Statements of the Company on a standalone and consolidated basis, for the nancial year ended 31st March, 2019, including the Balance Sheet as at 31st March, 2019, the Statement of Profit & Loss for the year ended on that date, together with the Reports of the Directors and Auditors thereon.

For SRS Limited
(Under CIRP)
Place: Faridabad
Date: 30.08.2019 Sd/-
(Jyotsna Nanda)
Company Secretary